While 2026Q1 revenue grew 28.1% year-over-year, the company continues to struggle with operating leverage, reporting an operating margin of -3.3% despite recent gross margin improvements to 47.9%.
| Sales/Revenue | 156.12M | 147.17M | 125.59M | 93.11M | 55.55M | 14.61M | 0 | 0 | 0 |
| Revenue Growth % | 19.44% | 17.18% | 34.9% | 67.61% | 280.17% | - | - | - | - |
| Cost of Goods Sold | 179.22M | 209.75M | 203.62M | 188.72M | 172M | 114.61M | 0 | 0 | 0 |
| COGS % of Revenue | - | 142.52% | 162.12% | 202.69% | 309.63% | 784.39% | - | - | - |
| Gross Profit | -23.1M | -62.57M | -78.02M | -95.61M | -116.45M | -100M | 0 | 0 | 0 |
| Gross Margin % | -14.8% | -42.52% | -62.12% | -102.69% | -209.63% | -684.39% | - | - | - |
| Gross Profit Growth % | - | 19.8% | 18.4% | 17.89% | -16.44% | - | - | - | - |
| Operating Expenses | 521.22M | 471.59M | 2.11B | 1.42B | 5.33B | 1.17B | 316.42M | 255.66M | 287.5M |
| OpEx % of Revenue | - | 320.43% | 1680.91% | 1524.91% | 9588.56% | 7975.22% | - | - | - |
| Selling, General & Admin | 269.18M | 275.8M | 367.82M | 362.56M | 296.44M | 234.06M | 123.51M | 88.58M | 64.34M |
| SG&A % of Revenue | - | 187.4% | 292.86% | 389.41% | 533.64% | 1601.81% | - | - | - |
| Research & Development | 190.19M | 195.79M | 322.38M | 338.75M | 329.58M | 460.21M | 192.91M | 167.09M | 223.16M |
| R&D % of Revenue | - | 133.04% | 256.68% | 363.83% | 593.3% | 3149.55% | - | - | - |
| Other Operating Expenses | 2M | 0 | 1.42B | 718.47M | 4.7B | 471.07M | 0 | 0 | 0 |
| Operating Income | -544.32M | -534.16M | -2.19B | -1.52B | -5.44B | -1.27B | -316.42M | -255.66M | -287.5M |
| Operating Margin % | -348.66% | -362.95% | -1743.03% | -1627.61% | -9798.18% | -8659.61% | - | - | - |
| Operating Income Growth % | - | 75.6% | -44.46% | 72.16% | -330.15% | -299.9% | -23.76% | 11.07% | - |
| EBITDA | -388.46M | -377.82M | -2.03B | -1.36B | -5.29B | -1.21B | -308.85M | -245.36M | -273.42M |
| EBITDA Margin % | -248.82% | -256.72% | -1617.18% | -1457.16% | -9519.58% | -8259.6% | - | - | - |
| EBITDA Growth % | 80.16% | 81.4% | -49.71% | 74.34% | -338.16% | -290.77% | -25.88% | 10.26% | - |
| D&A (Non-Cash Add-back) | 155.86M | 156.34M | 158.06M | 158.7M | 154.76M | 58.45M | 7.56M | 10.31M | 14.08M |
| EBIT | -516.32M | -534.16M | -768.22M | -796.92M | -742.46M | -1.27B | -316.3M | -253.44M | -283.5M |
| Net Interest Income | 28.86M | 28.65M | 26.73M | 7.95M | 1.74M | 332K | 6.14M | 12.43M | 8.34M |
| Interest Income | 28.86M | 28.65M | 26.73M | 7.95M | 1.74M | 332K | 6.14M | 12.43M | 8.34M |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 28.71M | -341K | 26.8M | 7.75M | 1.5M | 90K | 4.29M | 10.61M | 12.26M |
| Pretax Income | -515.62M | -534.5M | -2.16B | -1.51B | -5.44B | -1.27B | -312.12M | -245.05M | -275.23M |
| Pretax Margin % | -330.27% | -363.18% | -1721.69% | -1619.29% | -9795.48% | -8658.99% | - | - | - |
| Income Tax | -120.29M | -126.15M | -135.36M | -41.95M | -42.29M | -17.48M | 33K | -195K | 485K |
| Effective Tax Rate % | 23.33% | 23.6% | 6.26% | 2.78% | 0.78% | 1.38% | -0.01% | 0.08% | -0.18% |
| Net Income | -395.32M | -408.35M | -2.03B | -1.47B | -5.4B | -1.25B | -312.16M | -244.85M | -275.72M |
| Net Margin % | -253.22% | -277.47% | -1613.92% | -1574.23% | -9719.35% | -8539.39% | - | - | - |
| Net Income Growth % | 79.35% | 79.85% | -38.3% | 72.85% | -332.7% | -299.73% | -27.49% | 11.19% | - |
| Net Income (Continuing) | -395.32M | -408.35M | -2.03B | -1.47B | -5.4B | -1.25B | -312.16M | -244.85M | -275.72M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -9.73 | -11.11 | -63.54 | -47.20 | -173.87 | -40.18 | -2.52 | -1.99 | -2.42 |
| EPS Growth % | 83% | 82.52% | -34.62% | 72.85% | -332.73% | -1494.44% | -26.63% | 17.77% | - |
| EPS (Basic) | - | -11.11 | -63.54 | -47.20 | -173.87 | -40.18 | -2.52 | -1.99 | -2.42 |
| Diluted Shares Outstanding | 40.64M | 36.75M | 31.9M | 31.05M | 31.05M | 31.05M | 123.67M | 123.19M | 114.14M |
| Basic Shares Outstanding | 40.64M | 36.75M | 31.9M | 31.05M | 31.05M | 31.05M | 123.67M | 123.19M | 114.14M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - |
Regulatory reimbursement dependency
According to recent financial disclosures, GRAL achieved a 28.1% year-over-year revenue increase in 2026Q1, yet the lack of consistent, broad-based insurance reimbursement suggests that this growth remains highly sensitive to discretionary out-of-pocket spending and pilot program participation rather than standardized, recurring clinical adoption patterns.
The revenue trajectory appears volatile, reflecting the challenges of scaling a diagnostic platform without established payer coverage. Investors should monitor whether the recent growth uptick represents a sustainable shift in physician ordering behavior or merely the successful execution of specific, non-recurring institutional contracts.
As reported in quarterly filings, GRAL's gross margin reached 47.9% in 2026Q1, marking a significant departure from the negative margins observed throughout 2025, though this improvement warrants caution as it may reflect temporary cost-containment measures rather than a permanent reduction in the underlying cost of sequencing.
The historical inability to maintain positive gross margins highlights the high variable cost burden inherent in methylation-based diagnostic testing. Achieving long-term profitability will likely require a fundamental shift in laboratory efficiency or a substantial increase in the average selling price per test through formal reimbursement channels.
Based on the provided income statement data, GRAL continues to exhibit extreme operating leverage, with R&D and SG&A expenses consistently dwarfing gross profit, resulting in an operating margin of -3.3% in 2026Q1 despite the recent improvement in top-line performance and gross margin expansion.
The company's cost structure remains heavily weighted toward clinical validation and commercial infrastructure, which appears to limit the ability to scale operating income. Until the company can decouple its massive R&D spend from its commercial revenue, operating losses will likely remain a structural feature of the business.
Financial statements indicate that GRAL's cost structure is dominated by significant R&D and SG&A outlays, which, while essential for clinical trial execution, have historically prevented the company from achieving operational self-sufficiency, as evidenced by the persistent, albeit narrowing, quarterly operating losses observed since 2024.
The management team's expense discipline appears focused on maintaining the integrity of its clinical data atlas, which is a necessary but capital-intensive strategy. Investors should scrutinize whether the recent reduction in quarterly R&D spend is a sustainable efficiency gain or a potential risk to the company's long-term competitive moat.
While the bull case emphasizes the proprietary methylation atlas, the income statement suggests that GRAL faces significant risks, as the company's reliance on non-reimbursed revenue streams may lead to margin compression if the cost of customer acquisition continues to outpace the realized price per test.
Short-term observers may focus on the potential for a 'diagnostic odyssey' backlash, where high false-positive rates could lead to increased scrutiny from healthcare systems. This could force the company to increase spending on clinical evidence, further delaying the path to positive cash flow and potentially impairing the valuation.
Quick answers to the most common questions about buying GRAL stock.
For fiscal year 2025, GRAIL, Inc. (GRAL) reported total revenue of $147.2M.
GRAIL, Inc. (GRAL) reported a net loss of $408.4M for the fiscal year ending 2025.
GRAIL, Inc. (GRAL) reported an operating income of $-534.2M, resulting in an operating profit margin of -363.0%. This margin reflects the operational efficiency of the business before interest and taxes.
GRAIL, Inc. (GRAL) generated $-62.6M in gross profit for the year, representing a gross profit margin of -42.5%. This demonstrates the company's core pricing power and production efficiency.